V. Environmental Impact

The California Environmental Quality Act (CEQA) applies to projects that require discretionary approval from a governmental agency, unless exempted by statute or regulation. It is long established that the act of ratemaking by the Commission is exempt from CEQA review. As stated in the California Public Resources Code, the "establishment, modification, structuring, restructuring or approval of rates, tolls, fares, or other charges by public agencies" is exempt from CEQA.¹⁶ Likewise, the creation of government funding mechanisms or other government fiscal activities which do not involve any commitment to any specific project which may result in a potentially significant impact on the environment are not "projects" subject to CEQA.¹⁷

This Decision does not authorize any capital expenditures or construction projects. New construction projects which CTC intends to finance via this Application should undergo CEQA review as early as feasible in the planning process, as required by CEQA Guidelines Section 15004(b). To the extent capital expenditures are financed with the proceeds of the long-term debt issued pursuant to this Decision, ongoing projects have already been subject to any necessary CEQA review undertaken prior to CTC receiving a certificate of public convenience and necessity or permit to construct. CEQA review for future projects will occur through the regulatory processes applicable to each capital project when meaningful information necessary for conducting an environmental assessment is available.

CTC states in the Application that it will comply with all environmental permitting requirements applicable to the project that it will undertake in conjunction with the proposed loan. However, Res. T-17282, which approved the CASF grant for the Poker Flat project stated that "since the proposed project will be constructed on existing infrastructure, CTC's proposed project is exempt from CEQA review."

¹⁶ Public Resources Code Section 21090(b)(8).

¹⁷ CEQA Guidelines Section 15378(b)(4).